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Question 1 Puan Chinta is considering two possible investments, investments in shares of Syarikat IndigoBerhad ( Indigo ) and Syarikat Jingga Berhad ( Jingga )

Question 1Puan Chinta is considering two possible investments, investments in shares of Syarikat IndigoBerhad (Indigo) and Syarikat Jingga Berhad (Jingga). Table below gives the possible returns andassociated probabilities of shares Indigo and Jingga:Probability0.400.300.200.10Indigo(10)102025Rate of Return in %Jingga4152520From the information given, you are required to answer the following questions.a. Compute the standard deviation for each share. Clearly state the formula and show yourworkings.(4 Marks)b. Compute the coefficient variation for each share. Clearly state the formula and show yourworkings.(2 Marks)c. Based on your computation in part (a) and (b), inform Puan Chinta which share is riskier.Explain your answer.(4 Marks)(Total: 10 Marks)
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